Tesla to cut salaried workforce by 10% over next three months, says Musk.
Chief Executive Elon Musk said that electric carmaker Tesla (TSLA.O) would reduce its salaried workforce by roughly 10% over the next three months.
The cuts would amount to about a 3.5% reduction in total headcount at the company, Musk said at the Qatar Economic Forum organized by Bloomberg.
Yesterday we heard the news of Tesla being sued by former employees over ‘mass layoff,’ saying it violated the law.
Former Tesla employees have filed a lawsuit against the company, alleging that its decision to carry out a “mass layoff” violated federal law as the company did not provide advance notice of the job cuts.
John Lynch filed the lawsuit and Daxton Hartsfield, fired on June 10 and June 15, respectively, seeks pay and benefits for the 60-day notification period. They said they were terminated from Tesla’s gigafactory plant in Sparks, Nevada, in June.
Tesla to cut salaried workforce
According to the suit, more than 500 employees were terminated at the Nevada factory.
According to the lawsuit, the workers alleged that the company failed to adhere to federal laws on mass layoffs that require a 60-day notification period under the Worker Adjustment and Retraining Notification Act.
They seek class-action status for all former Tesla employees throughout the United States who were laid off in May or June without advance notice.
“Tesla has simply notified the employees that their terminations would be effective immediately,” the complaint said.
Tesla, which has not commented on the number of layoffs, did not immediately respond to requests for comment about the lawsuit.
Musk, the world’s richest person, said earlier this month he had a “super bad feeling” about the economy and that Tesla needed to cut staff by about 10%, according to an email seen by Reuters.
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